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DECREE

AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE GOVERNMENT'S DECREE NO. 98/2007/ND-CP OF JUNE 7, 2007, PROVIDING FOR THE HANDLING OF TAX-LAW VIOLATIONS AND THE ENFORCEMENT OF TAX-RELATED ADMINISTRATIVE DECISIONS

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 29, 2006 Law on Tax Administration;

Pursuant to July 2, 2002 Ordinance on Handling of Administrative Violations and the April 2, 2008 Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Handling of Administrative Violations;

At the proposal of the Minister of Finance,

DECREES:

Article 1. To amend and supplement a number of articles of the Government's Decree No. 98/2007/ND-CP of June 7, 2007, providing for the handling of tax-law violations and the enforcement of tax-related administrative decisions, as follows:

1. To amend Point b, Clause 1 of Article 6 as follows:

"b) Fine:

Fine is specified for every act of tax-law violation as follows:

- For acts of violating tax procedures, the maximum fine is VND 100 million. The specific fine level for an act of violating tax procedures is the average of the fine bracket set for such act; if extenuating circumstances are involved, the fine level may be reduced, but must not be lower than the minimum level of the fine bracket; if aggravating circumstances are involved, the fine level may be increased but must not be higher than the maximum level of the fine bracket:

- A fine of 0.05% of the late paid tax amount per day. for acts of late payment of tax or fine;

- A fine of 10% of the deficient tax amount, for acts of making false declarations which lead to an amount lower than the payable tax amount or higher than the refundable tax amount;

- A fine equal to the money amount not remitted into state budget accounts, for acts of violation defined at Point b. Clause 1. Article 114 of the Law on Tax Administration;

- A fine of between once and thrice the evaded tax amount, for acts of tax evasion or tax fraud.

Upon determination of fine levels for taxpayers who commit violations involving both aggravating and extenuating circumstances, the reduction of aggravating circumstances will be made on the principle that an aggravating circumstance is reduced against one extenuating circumstance. If after the reduction on the above principle, there remains one aggravating circumstance or one extenuating circumstance, depending on the nature and severity of violation and the violator's attitude towards remedying consequences, the persons with handling competence will consider and impose a fine level as in the cases involving one aggravating circumstance or involving neither aggravating nor extenuating circumstances. For each aggravating or extenuating circumstance the average fine level in the fine bracket imposed will be increased or reduced by 20%."

2. To amend and supplement Clause 5 of Article 9 as follows:

"5. A fine of between VND 500,000 and 5,000,000, for acts:

a) Submitting tax declaration dossiers between more than 40 and 90 days later than the prescribed deadline;

b) Submitting tax declaration dossiers more than 90 days later than the prescribed deadline, without giving rise to any payable tax amounts."

3. To supplement Point o, Clause 1 of Article 14 as follows:

"o) Business households and individuals that make tax payment by the presumptive method still currently conduct business during the time of permitted business suspension."

4. To amend Article 18 as follows:

"Article 18. Tax agencies' competence to handle tax-law violations

1. Tax officers on duty have the rights to impose:

a) Caution;

b) A fine of up to VND 200,000 for acts of violating tax procedures specified in this Decree.

2. Tax team leaders, within the ambit of their functions and tasks, have the right to impose:

a) Caution;

b) A fine of up to VND 5,000,000, for acts of violating tax procedures defined in this Decree.

3. District-level Tax Department directors, within geographical areas under their management, have the rights:

a) To serve caution;

b) To impose fines of up to VND 20,000,000, for violations acts specified in Articles 7, 8, 9, 10 and 11 of this Decree;

c) To impose fines for violations defined in Articles 12, 13, 14, 16 and 17 of this Decree;

d) To confiscate material evidences and means used for commission of tax-law violations;

e) To apply remedial measures defined in Clause 3, Article 6 of this Decree.

4. Provincial-level Tax Department directors, within geographical areas under their management, have the rights:

a) To serve caution;

b) To impose fines of up to VND 100,000,000, for acts of violating tax procedures defined in Articles 7, 8, 9, 10 and 11 of this Decree;

c) To impose fines for violations defined in Articles 12, 13, 14, 16 and 17 of this Decree;

d) To confiscate material evidences and means used for commission of tax-law violations;

e) To apply remedial measures defined in Clause 3, Article 6 of this Decree."

5. To amend Article 22 as follows:

"Article 22. Making written records of tax-law violations

Making written records of lax-law violations is provided for as follows:

1. The competent person on duty who detects a tax-related violation shall make a written record thereof in the set form and promptly transfer it to a person with the sanctioning competence. Such a record must contain all signatures as required by the law on handling of administrative violations; if the violator refuses to sign the record, its maker shall write the reason therefor in the record and take responsibility before law for the contents written in the record.

2. Cases in which records are not required to be made upon issuance of sanctioning decisions:

a) Tax-law violations committed by taxpayers have been examined, inspected, detected and written in examination records or inspection conclusions by tax agencies;

b) The delayed tax payment by taxpayers has been written in tax agencies' notices of delayed tax and fine amounts."

6. To amend and supplement Clause 1 of Article 39 as follows:

"1. A decision on enforcement of a tax-related administrative decision is valid for one year from the date of issue. A decision on enforcement of a tax-related administrative decision by deducting money from the violator's account is valid for 30 days from the date of issue."

Article 2. Effect

1. This Decree takes effect on April 1, 2009.

2. The Ministry of Finance shall guide the implementation of this Decree.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial-level People's Committees, and concerned organizations and individuals shall implement this Decree.